The ambitious dragon-based title has been put to rest.

Update: Microsoft has confirmed Scalebound‘s cancellation. Their statement reads as follows:

“After careful deliberation, Microsoft Studios has come to the decision to end production for “Scalebound.” We’re working hard to deliver an amazing lineup of games to our fans this year, including “Halo Wars 2,” “Crackdown 3,” “State of Decay 2,” “Sea of Thieves” and other great experiences. For more information on our 2017 plans, please visit: https://news.xbox.com/2017/01/05/xbox-closes-milestone-year-in-2016/.”

While saddening to hear, we wish Platinum Games luck with their future projects.

Previous: Bad news for those awaiting Platinum Games’ upcoming Scalebound: Microsoft may be announcing its cancellation very soon. Kotaku reports the company will be shortly releasing a statement on the game’s status, and states sources have indicated its impending cancellation. Eurogamer is also reporting all production on the title ceased before the end of 2016, citing game engine issues, overdue deadlines and members of the development team taking leave from the project. Scalebound‘s official webpage was also taken down from the Xbox website.

Scalebound, directed by Devil May Cry/Bayonetta’s Hideki Kamiya, was first announced for Xbox One back in E3 2014 and set for release in late 2016, but was pushed into 2017 due to a dense release schedule. The ambitious game, starring a man who battles armies and monsters with his dragon partner, has long since been rumored to be suffering from development woes since it missed E3 2015. Scalebound was last previewed at Gamescom 2016 in August.

We’ll be sure to update this post with Microsoft’s statement when it appears, so watch this space.

Do you think Scalebound will end up cancelled? Let us know in the comments below!